USD Index

The US dollar index climbed slightly higher in the early hours of the European market. However, it is trading close to the three-week lower levels as the market is eyeing the US consumer price index (CPI) for March to find the next opportunity. Positive CPI figures might bring more stability to the USD index; moreover, rising inflation might also the index in the short-term period. 

The U.S. Dollar Index against a basket of six currencies climbed up 0.12% to 92.255. The dollar index has been sliding in the last couple of weeks but possibly find strength with the positive US economic data due this week. Upcoming economic data might set the further trend and new opportunities for the investors in the coming week. 

Based on the technical analysis, the 92.5 level seems to be the key resistance zone. Sustaining below the 92.5 levels the US dollar looks weak and might lead to lower levels in the near-term period. However, at the bottom 91.7 level appeared to be a key support zone where bears might take a break before moving down for further lower levels.

EUR/USD

EUR/USD pair wipe out earlier profits, plunges lower than the 1.1900 levels. Rising US treasury yield and inflation fear are helping the US dollar against the Euro. Ahead of the US CPI data investors are taking a cautious approach.

EUR/USD declines marginally 0.08% to 1.1900 in the early session of the European market. The Eurozone seems to be battling with shrinking economic projections due to rising coronavirus infections along with a fall behind vaccination campaign in the EU. Economic development disparities between the US and the EU are putting weight on the EUR/USD pair. 

Based on the chart pattern, the 1.1854 level seems to be the key support zone; however, at the top, the 1.1934 level might play a major resistance role in the near term before it moves further upside. 

GBP/USD

GBP/USD pair witnessed some strength based on the UK economic growth published in the morning. The United Kingdom’s economy expanded by 0.4% in February from January; however, it is lower than the expected 0.6% figure. Moreover, rising inflation fear and US treasury yield are not letting the British pound sustain at the higher levels.

GBP/USD pair climbed up 0.15% to 1.3761 in the early hours of the London opening. However, recently published UK GDP and trade balance numbers were lower than the projected numbers. But the published data have shown growth in the UK economy in comparison to the previous month. Moreover, easing the restriction in the UK might add further development to the UK economy.

Based on the technical analysis, the 1.3654 level appears to be the key support zone. If it sustains below 1.3654 level might further weakness in the pair. But there is a high possibility that it might recover from the above-mentioned support zone. However, the 1.3760 perform to be the immediate resistance level. Sustaining above 1.3760 levels the pair might develop a bull flag for the higher levels.